Swot Analysis For Multiplastics example essay topic

... 1. Abstract Summary A brief outline of Multiplastics Ltd Is discussed including the nature of their business and the problems and inefficiencies they encounter. Numerous Innovation tools are investigated leading to a recommendation towards a focus on the strengths, the elimination of weaknesses and the investigation into the opportunities using the SWOT analysis method.

1.1 Introduction This report demonstrates the use of an innovation tool and its application in business to provide solutions to problems or inefficiencies that are present. The report specifically focuses on the company, Multiplastics Ltd and the circumstances. An innovation tool will be applied in order to offer a solution to their problems and recommendations will be made as to what changes should be put into place in order to improve their business. 1.2 BackgroundMultiplastics Ltd are a plastic sheet stockholder and have a head office in Basildon, Essex and a branch in Coventry. They stock many forms of plastic sheet including Acrylic, Polycarbonate, PVC and PET.

As well as stocking flat sheets in a variety of thicknesses and colours, they also offer a number of processing services which include cut-to-size panels, diamond polishing, edge profiling and multi-sheet CNC routing, a facility which is unique to Multiplastics in the market. Muti-sheet routing as the term implies means that the router cuts panels from multiple sheets stacked on top of each other by means of a hydraulic moveable beam, which moves in conjunction with the router heads. The beam holds the sheets in place as the router head cuts. This enables Multiplastics to produce high volume at low cost compared with convention suction bed routers. The principal customer base of Multiplastics consists of Point of Sale companies and the competition is fierce with approximately ten competitors and no restriction on how a sale is done in terms of what price like for like sales can be sold at by different companies. Multiplastics have a number of problems and inefficiencies on a number of fronts and change is required in order to increase profit margin and market share One of the problems is that Multiplastics are based in Essex and although they have a branch in Coventry, this is merely a sales office for the midlands with a small amount of warehouse space.

All cutting and, routing and processing takes place in Basildon where all the stock is kept also. This causes a problem logistically because some of their best customers are as far as Bradford, which can mean running a lorry from Essex to Bradford on a daily basis in order to keep the customer happy. This is not cost effective considering how tight profits margins can be within this industry. Secondly, Multiplastics are losing a number of large routing jobs because they are not competitive in the small jobs. This is due to the fact that they charge for material by the sheet. - any offcuts are scrapped - instead of per metre square. This is something their competitors are prepared to do.

Customers are taking the opinion that Multiplastics do not want to do the small jobs and are therefore unwilling to offer the larger volume work in some cases. Lastly the company has no clear idea about the direction it is heading and where it sees itself in the future. There are no long-term goals in place and things have a tendency to be done on a day to day basis. 1.3 Analysis There are a number of ways innovation can help to solve the above problems. Strategy and tactics crucial to any business and must be well thought out and well documented. There are a number of ways this can be done but it was decided that in the circumstances of Multiplastics a SWOT analysis would yield the best information and therefore offer the best success SWOT Analysis To effectively analyse the company position within the marketplace and how it can make best of its assets, a SWOT analysis can provide a great insight into the company by looking at it strengths, weaknesses, opportunities and threats.

Combing brainstorming with SWOT analysis can often yield the best results. The following diagram shows how a SWOT analysis works Situation Analysis Internal Analysis External Analysis Strengths Weaknesses Opportunities Threats SWOT Profile Below is the SWOT analysis for Multiplastics. Strengths Unique multi-sheet routing service Excellent stock levels Large customer base Good sales team Good suppliers Excellent machinery Weaknesses Difficult to serve Midlands and the North Unwilling to change Do not charge per metre square Low profit margins Lead TimesOpportunitiesMore routed panel business New market areas Extra Services New technologies Threats Competition pricing structure New competition Competitor fast delivery times Changed in legislation 2. Conclusion and recommendations The following questions can guide us as to what to do with the information supplied by the SWOT analysis. 3. How can we use the existing strengths to maximis e on our opportunities?

4. How can we use the existing strengths to minimise or avoid the threats? 5. How can we alter the weaknesses and turn them into strengths? The unique position of Multiplastics being able to offer high volume routed panels is a key strength to the company and also presents an opportunity to enter new markets. In order to fully exploit this strength it is recommended that pricing be changed from per sheet pricing to per metre square pricing.

This will now only place the company on an even ground with its competitors; it will also enable the company to take the smaller routing jobs in order to ensure all larger routing jobs are secured as well. Routing business by nature is significantly higher margin than cut panel business; therefore it is only logical to concentrate on this area. To facilitate this and ensure its success a dedicated space in the processing department should be set aside to keep all off cut material that can be managed to be used on the smaller orders instead of scrapping the material. This will increase profits by maximis ing sales value on material that would have previously have been scrapped and will pay for the extra labour costs involved in maintaining an efficient off cut section within the department.

On the matter of turning delivery into Midlands and the North into a more profitable situation it is recommended that a vehicle be stationed at Coventry. Any orders that are for the above areas can be delivered from Basildon to the Coventry branch where they can be off-loaded onto the Coventry vehicle for delivery. This will free up the Basildon vehicle to make other deliveries on his way back up to head office. This will not only prove more profitable but will also be a more reliable method since non urgent goods can be left in storage at Coventry until delivery is required. The Above recommendations would solve the problems encountered by the company by focusing the attention toward their core strengths and eliminating their biggest weakness at the same time. Profit would rise as a result of the increased efficiency along with an increased amount of orders ensuring a more successful business 3.